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2005 General Session
Statewide sales tax in Wyoming is presently set at four cents per dollar. Counties have the option of adding up to two additional cents per dollar for general operations and capital construction projects, so sales tax in some Wyoming communities ranges up to six cents per dollar.
HB 7 would have reduced Wyoming's statewide sales tax from 4% to 3%. It would not have affected the ability of counties to access 1 or 2% more in sales tax. Reducing the statewide tax by one percent would lead to an estimated decrease in tax revenue to the general fund of $88 million in 2006, plus an estimated decrease in local source funds of $39 million in 2006.
Supporters of HB 7 argued that sales tax is a regressive form of taxation, especially when food and clothing are included, as they are in Wyoming. When basic necessities that people have no choice about buying are taxed, low-income families end up paying a higher proportion of their money on items subject to sales tax. So, sales tax disproportionately impacts poorer people. Proponents thought that now, when the state has such a large budget surplus, would be a good time to reduce the sales tax burden on Wyoming citizens. Proponents noted that when the statewide sales tax was increased by one percent several years ago, the increased was supposed to be temporary, but the Legislature never allowed it to expire as they promised they would when they originally increased it.
Opponents argued that this would only increase our reliance for revenue on the minerals industry, and that Wyoming citizens already enjoy a very low personal tax burden. Some opponents argued that we should reduce the regressivity of the sales tax by exempting groceries and other basic necessities from sales tax instead of just reducing the rate across the board for everything. The Equality State Policy Center noted that it is fiscally irresponsible to remove tax revenue without identifying a source of revenue replacement or without identifying and quantifying the benefit that would justify the loss in revenue.
The House Revenue Committee passed the bill, 5-4. HB 7 died on general file in the House, as it was not brought up for debate and a Committee of the Whole vote before the deadline for that action passed.
The vote listed below is the House Revenue Committee vote. A YES vote means the representative wanted to reduce Wyoming's statewide sales tax by one percent. A NO vote means the representative did not want to reduce the statewide sales tax.
| House Revenue Committee | HB 7 1/31/05 |
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| H 10 | Rodney Anderson (R - Laramie - chairman) | No |
| H 47 | Kurt Bucholz (R - Carbon/Albany) | No |
| H 36 | Gerald Gay (R - Natrona) | Yes |
| H 59 | Mary Meyer Gilmore (D - Natrona) | Yes |
| H 37 | Steve Harshman (R - Natrona) | No |
| H 39 | John Hastert (D - Sweetwater) | Yes |
| H 55 | David Miller (R - Fremont) | Yes |
| H 9 | Bryan Pedersen (R - Laramie) | No |
| H 56 | Tom Walsh (R - Natrona) | Yes |